Despite all the bad news hitting Wall Street, Jim Cramer says investors can buy the recession and safety stocks, along with oil and energy.
Monday was yet another day when everything was going wrong for Wall Street, Jim Cramer admitted to his Mad Money viewers. Despite the war in Ukraine, Covid outbreaks in China, rising interest rates and sky-high oil prices, however, Cramer still found things to be optimistic about.
Make no mistake, things are bad out there. Russia’s aggressions in Ukraine are horrific. Lockdowns in China could hurt an already disrupted supply chain even more.
The Federal Reserve’s chances at taping down inflation without crushing the economy are tepid at best. And with gas prices at record levels, consumer sentiment is quickly shifting to the negative column. Why be positive then? Cramer offered three reasons.
Over on Action Alerts PLUS, portfolio managers Chris Versace and Bob Lang explain what investors need to know about commodities, Ukraine and Russia — and why they’re optimistic for Deere & Co. (DE) – Get Deere & Company Report Get in on the conversation with their trading strategies and investment ideas.
First, is time. Time is always on your side when it comes to investing. Eventually, Covid, Ukraine and supply chains will all be resolved, and that’s a good thing for stocks.
Second, is price. Stocks get cheaper as they go lower, and with many tech stocks trading like it’s armageddon, there will eventually be value to be had.
Finally, there’s sentiment. When everyone is negative and there’s no one left to sell, that’s when bottoms are formed. We’re getting closer to that bottom every day. In the meantime, investors can buy the recession and safety stocks, along with oil and energy, while they remain patient and wait for a better day.
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